RetireMentors

Financial Planning

12 tips to help retirees avoid being scammed

After "retiring" from a 40-year career in advertising, Art spent several
years as a consultant working with employers involving the aging work force and
with seniors addressing the challenges facing them as they prepared for
retirement. In early 2003, he founded
RetiredBrains.com, a
site that has developed into a major destination for boomers, retirees and
people planning retirement. RetiredBrains provides information on a wide variety
of subjects and includes a free job board connecting employers looking to hire
older workers. Art’s book "Invent Your Retirement Resources for the Good Life,"
published by
Oakhill Press, is a complete reference guide for those planning retirement and
for retirees themselves. Art can be reached via
LinkedIn, Twitter: @artkoff and
Facebook..

According to the Better Business Bureau 10% of the U.S. population falls victim to consumer scams every year.

John Jupin, a former FBI special agent and retired U.S. Department of Labor — Office of Inspector General special agent gives this advice: "You may not be able to totally prevent fraud, but to minimize it is the key. The longer it goes on, the more problems you have. To minimize your exposure to fraud, I strongly suggest keeping up to date on the latest scams, as if you are aware of them, you are more likely to avoid being scammed."

You can check out a list of scams here. Below I have listed some new scams you should you should know about.

Social media has enabled scammers to reach millions of users often by creating "fake" pages promising everything from discounted tickets to sporting events to free airline flights or shopping sprees at name department stores. Official-looking Facebook pages often including the actual logos of well-known companies are used to create an air of authenticity. Sometimes these posts come from a trusted friend who was encouraged to share "the deal." Clicking on these pages can lead you into divulging your personal information.

Electronic pickpocketing

Information on credit cards using RFID chips can be stolen by thieves using relatively inexpensive portable scanners. All they need to do is get the scanner close enough to your wallet or purse to steal credit card numbers and expiration dates. Thieves can use this information to make fraudulent purchases. If you're concerned about getting ripped off by someone with a scanner place a piece of aluminum foil in your wallet as this will defeat the scanner.

5. Set up online access to your banking accounts so you can easily check unlawful use and stop mailed statements.

6. Do not throw away documents that contain personal information like credit card statements and medical bills. Shred them first.

7. Check with your Better Business Bureau (bbb.org) for authenticity of offers.

8. If a purported "employer" (company paying you on a commission basis) or a buyer or seller gives you a check and insists that you wire or deposit money back into their account, it is a scam. There is no legitimate reason for someone to give you a check and then ask that you give them a part of the money back.

9. Never assume a check has cleared, even if you get access to funds from a check you deposit, unless your bank explicitly tells you so. Just because the funds from the check say "available" in your account doesn't mean the check is good.

10. Do not accept checks for more than your asking price, commission, revenue share or salary. Demand a check for the correct amount and if this is refused, you will know it's a scam.

11. Never wire or deposit money into the bank accounts of people you do not know for any reason.

12. Resist high-pressure tactics. Scammers pressure their victims to act now to get a job, help out a friend or family member in trouble or receive payment for an item they are selling. If you are a victim report the scam immediately by filing a complaint at fraud.org via its secure online complaint form. This form is shared with law enforcement and consumer groups to go after the scammers.

The easiest and most successful way to protect yourself against identity theft is to place a credit-card freeze on your accounts. This prohibits anyone, including you and your spouse, from opening credit in your name. It will not affect your credit or cause problems with the credit cards you currently have nor will it affect your mortgage, car loans, etc.

Since scammers cannot open credit in your name, they are unable to use your identity, and identity theft becomes highly unlikely. Remember that while a credit freeze is in place you will not be able to apply for new credit cards or credit yourself.

To place a credit-card freeze on your account, you must contact the three main credit agencies.

Equifax 800-525-6285

Experian 888-397-3742

Trans Union 800-680-7289

If your identity has been stolen, you must notify the credit agencies listed above. You should also contact your local law enforcement agency. Complaints can be filed as well by calling 877-IDTHEFT or logging on to the Federal Trade Commission website.

Intraday Data provided by SIX Financial Information and subject to terms of use.
Historical and current end-of-day data provided by SIX Financial Information. Intraday data
delayed per exchange requirements. S&P/Dow Jones Indices (SM) from Dow Jones & Company, Inc.
All quotes are in local exchange time. Real time last sale data provided by NASDAQ. More
information on NASDAQ traded symbols and their current financial status. Intraday
data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. S&P/Dow Jones Indices (SM)
from Dow Jones & Company, Inc. SEHK intraday data is provided by SIX Financial Information and is
at least 60-minutes delayed. All quotes are in local exchange time.